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- Title
THE ROLE OF MANAGERIAL LEARNING AND INTERPRETATION IN STRATEGIC PERSISTENCE AND REORIENTATION: AN EMPIRICAL EXPLORATION.
- Authors
Lant, Theresa K.; Milliken, Frances J.
- Abstract
This study uses a managerial learning framework to build and test a model of the decision-making process that drives decisions to strategically reorient an organization. The model examines the effects of past performance, managerial interpretations, and top management team characteristics on the likelihood of strategic reorientation in two distinct environmental contexts. The results indicate that poor past performance, environmental awareness, top management team heterogeneity, and CEO turnover increased the likelihood of reorientation. There are some differences in the ways in which these variables affect reorientation across the two environmental contexts. Poor past performance was more strongly associated with reorientation in the stable environment than in the turbulent environment. The tendency to make external attributions for poor performance outcomes decreased the likelihood of reorientation in the turbulent environment, but not in the stable environment.
- Subjects
DECISION making; ORGANIZATIONAL change; CHIEF executive officers; STRATEGIC planning; PSYCHOLOGY of executives; MANAGEMENT committees; CORPORATE reorganizations; BUSINESS planning; FINANCIAL performance; ORGANIZATIONAL effectiveness
- Publication
Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009, 1992, Vol 13, Issue 8, p585
- ISSN
0143-2095
- Publication type
Article
- DOI
10.1002/smj.4250130803